Minnesota And Safelite Reach Partial Truce
Safelite Solutions and Safelite Group recently withdrew their motion for a preliminary injunction against a state statute that specifically kept Safelite from conducting business in Minnesota without a hearing.
The lawsuit stems from a settlement reached between the Minnesota Department of Commerce and Auto Club Group that imposed a penalty of $150,000 on the group and forced them to stop using Safelite Solutions or any subsidiary of Safelite Group to administer Minnesota auto glass claims. Safelite filed for a preliminary injunction because they were not notified in time to argue the finding. As a result, they could no longer do business in Minnesota.
They have now reached a partial agreement with the state’s insurance commissioner. However, they reserve the right to refile for the injunction if they are not satisfied with how the settlement is conducted. The Minnesota Supreme Court did refuse to review the original decision, so Safelite took their case to the U.S. District Court.
For the time being, Safelite has a partial truce with the state and will be monitoring how well the settlement deal works for the company. If they deem it necessary, the company will resume its legal action against the state in order to keep their business interests in Minnesota healthy.